Bogota Financial Corp. (NASDAQ: BSBK)

Bogota Financial Corp., known by its stock symbol BSBK, is a Maryland corporation that operates in the banking industry. The company's primary business activities revolve around Bogota Savings Bank, a New Jersey-chartered savings bank with six offices in Bergen, Morris, and Essex Counties, and a loan production office in Spring Lake, New Jersey.

Bogota Savings Bank generates revenue through the origination of various types of loans. These loans include one-to-four-family residential real estate loans, commercial and multi-family real estate loans, consumer loans, construction loans, and commercial and industrial loans. The bank attracts deposits from the general public and municipalities and uses these funds, along with advances from the Federal Home Loan Bank of New York and funds generated from operations, to originate loans.

The company's loan portfolio is comprised of several segments, including residential real estate loans, commercial and multi-family real estate loans, consumer loans, construction loans, and commercial and industrial loans. At the end of 2023, one-to-four-family residential real estate loans totaled $486.1 million, or 67.7% of the bank's total loan portfolio. These loans are underwritten according to Fannie Mae and Freddie Mac guidelines and are offered with fixed or adjustable interest rates. The bank also offers jumbo loans, which are loans above the conforming limits up to a maximum amount of $2.5 million.

Commercial and multi-family real estate loans totaled $175.4 million, or 24.5% of the bank's total loan portfolio at the end of 2023. These loans are secured primarily by office buildings, industrial facilities, retail facilities, and other commercial properties, and are offered with fixed or adjustable interest rates. Consumer loans totaled $29.4 million, or less than 4.1% of the bank's total loan portfolio, and consist primarily of home equity loans and lines of credit. Construction loans totaled $49.3 million, or 6.9% of the bank's total loan portfolio, and are generally structured as two-year interest-only balloon loans. Commercial and industrial loans totaled $6.7 million, or 0.9% of the bank's total loan portfolio, and are secured by accounts receivable, inventory, or other business assets.

Bogota Financial Corp. faces significant competition for deposits and loans from numerous financial institutions operating in its market area. The company competes for loans by offering high-quality personalized service, providing convenience and flexibility, providing timely responses on loan applications, and by offering competitive pricing.

In terms of its position within the industry, Bogota Financial Corp. is a relatively small bank holding company, with a total assets of $939.3 million at the end of 2023. The company's largest competitor is Bank of America, followed by JP Morgan Chase, Wells Fargo, and Citi. The company's key competitors in the residential real estate lending market include Fannie Mae and Freddie Mac, while its key competitors in the commercial real estate lending market include other commercial banks and life insurance companies.

Bogota Financial Corp. serves a diverse range of individuals and businesses in its primary market area, including residential borrowers, commercial borrowers, and municipalities. The company's largest customer is the Bogota Savings Bank Charitable Foundation, Inc., which received 263,150 shares of common stock and $250,000 in cash in connection with the reorganization of Bogota Savings Bank.